Oil prices edged lower on Monday amid mixed signals on US trade policy, although a weak US dollar helped limit further losses.
International benchmark Brent crude fell by around 0.2%, trading at $64.13 per barrel at 10.10 a.m. local time (0710 GMT), down from $64.26 at the previous session’s close.
US benchmark West Texas Intermediate decreased by about 0.25%, settling at $60.81 per barrel, compared to its prior session close of $60.96.
Tensions over the US-China trade war saw mild easing after US Customs and Border Protection published a notice on Friday that appeared to exempt electronic products from 145% tariffs on Chinese goods, raising hopes that such items had been spared.
However, Commerce Secretary Howard Lutnick attempted to clarify things on Sunday, saying electronics were not permanently exempt but would instead be subject to new semiconductor-specific tariffs expected in the next month or two as part of a broader strategy.
US President Donald Trump also denied reports that his administration had granted a tariff exception for electronics like smartphones and chips, contrary to suggestions late last week that consumer tech products would be spared from sweeping reciprocal tariffs.
‘These products are subject to the existing 20% fentanyl tariffs—they are just moving to a different Tariff ‘bucket,” Trump said Sunday on his Truth Social account.
Last week, after an initial drop in prices due to President Trump’s unexpected tariff hike on major trading partners, markets rebounded following his decision to pause the levies for 90 days, except for China.
‘The sudden shifts in US trade policy left the market in two minds, with prices swinging wildly all week. However, uncertainty is likely to linger,’ Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, said in a note.
Meanwhile, the US dollar index, which measures the value of the American dollar against a basket of currencies, fell to 99.014, its lowest level in about three years.
The decline in the value of the greenback is encouraging oil-importing countries to purchase more crude oil at cheaper dollar prices, supporting higher crude prices.
